When someone looks for a home, they think of it as an abode for building their lives in it. While for some, it may be just an investment, there are those who have these dreams, dreams of having their first home overflowing with emotions, hopes, so many queries and worrying about every minute detail. Your home is your safe haven and in order to avoid mistakes, it’s always better to get all your queries settled and get things started.
If you are a first time home buyer, you must have a lot of questions in mind. Let’s see if we can answer some of the most frequently asked questions to help ease your mind while they decide what’s going to work for your new home
FREQUENTLY ASKED QUESTIONS BY THE FIRST-TIME HOMEBUYERS
1. How to know if you are ready to purchase your own home?
There are no such signs or indications as to when someone is ready to own their home or buy a new home for themselves but yes a couple of cues might signal when it’s time. If you like staying in a current area, you might be ready to settle in the same place managing to get its ownership by taking care of the financial loans, maintenance, lease, agreements etc. You can also plan to save up for your dream home and make arrangements accordingly.
2. Why should I prefer purchasing over renting?
While renting is a short-time fix to have a roof over your head and I must agree, it is less of a hassle initially, but buying one’s own home is like investing in their own future. There are certain financial perks like tax deductions and home equity that can also be helpful along with owning a home.
3. How does a bank loan for property purchase work?
Before opting to buy a home, it is always a good idea to gather necessary information about how a bank loan works and what are the different ranges of home loans available, the loans approved with the interest rates, down payments, mortgage etc. The bank will consider the loan based on how much a buyer makes, how much debt they have if they own any assets and their credit history before issuing a preapproval letter for the home loan that has details of the amount they can purchase, providing their financial strength.
4. What are the factors that are taken into account while sanctioning the loan amount?
There are various loan programs for almost every homebuyer who are looking to get their home and like always it is feasible to shop around for a mortgage. Generally a buyer’s credit score, property value and down payment can impact the sanction of the loan amount.
5. How much money do I need to pay for the down payment?
Generally, you need to pay 10-20% of the property value as a down payment. This amount is also dependent on the bank or finance company that is loaning you the money for the purchase.
Are you looking into buying a home? Do you have any questions? Please put them in the comments below.